Is there Zakah on deposits and ‘for sale‘ property?

23 Aug 2020 -

Is there Zakah on deposits and ‘for sale‘ property? Question: Aww. I purchased a property only with the intention of renting the property out. For whatever reason it did not work out so i have put it back on the market for sale. There are a few potential buyers due to the current travelling restrictions because of what is happening in the world all is put on hold.

I have seen another property which i am thinking of possibly purchasing again for rental as there are tenants in there already. I am putting deposit separately for this property

1) Do i need to pay zakat for the first property above put on sale and secondly do i need to pay zakat for the deposit paid for the second property jzk Answer: In the Name of Allah, the Most Gracious, the Most Merciful. As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh. There is no zakah on the property you have put on sale (since you did not have the intention of selling at the time of buying it). [1]

If the transaction for the second property has been finalised, you do not need to pay Zakāh on the deposit. [2]

However, if the deposit has been paid before finalising the transaction, then you must pay Zakāh on the deposit. [3]

And Allah Ta’āla Knows Best Concurred by: Hanif Patel Mu‘adh Chati Asmar Akram Approved by: Mufti Siraj Sitponi Falahi